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Past performance warning must be in main ad text

Past performance warnings will have to be included in the main text of financial ads rather than in small print at the bottom under new proposals from the FSA.

The changes come as part of a policy statement on financial promotions published last week which compels fund managers to include past performance warnings in the main body of ads.

The proposal was originally suggested by the regulator&#39s past performance taskforce in a discussion paper last October.

The regulator also last week published consultation paper 132, The Presentation of Past Performance and Bond Yield Funds in Financial Promotion, which says ads for bond funds containing information on yields must include both the income and redemption yield.

Other changes include not allowing the use of a fund&#39s track record to be used in any way that links it to the future performance of a product and an ad must no longer feature past performance as its predominant message.

The FSA is planning to set up a hotline so consumers can report an ad or brochure they believe is misleading.

It says it will review the measures after two years to ensure their effectiveness.

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